Section 7B: Special Provision to the Identification of High-Ranking Persons

1) The Reporting entity shall establish a risk management system to identify whether a customer, person seeking to be a customer, or beneficial owner of a customer or transaction is politically exposed.

2) The reporting entity, while evaluating, shall adopt the following additional measures if it finds the customer or beneficial owner is either a foreign Politically Exposed Person (PEP) or a domestically exposed person or internationally politically exposed person evaluated to be of high-risk due to business reasons:

(a) To obtain approval from senior management officials while establishing a business relationship,

(b) To acquire approval from senior management official to continue the business relation with an existing customer if he is identified as a Politically Exposed Person
as per clause (a),

(c) To take all reasonable measures to identify the source of amount/fund and property of such customer or beneficial owner,

(d) To conduct ongoing monitoring of such customer and the business relationship,

(e) To apply Enhanced Customer Due Diligence (CDD) measures pursuant to section 7E.

3) Provisions stipulated in sub-sections (1) and (2) shall be applicable to the family members and associated persons of foreign PEP, or international PEP or domestic PEP identified as high risk.